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Conflict Management Style

Rafaela Cariati

Marketing and Sales, ILAC International College

Working Across Cultures

Richard Browne

June 26, 2024

Major Assignment 02 - Major Assignment 02

When I lived in Brazil I used to work on a bank that had its focus on people who

were retired or on pensions. If the clients needed money, they had two possible choices for loans.

The first was a line of credit given by the government. That one had an interest rate much lower,

usually around 2% per month over the amount loaned by the bank. The other option was a much

higher one, it was the private line of credit, that is set bank by bank. Where I worked varies from

client to client, ranging from 17% up to 20% per month. Given that, although manny times the

amount of money given by the private loan was much lower, the monthly installment was much

higher than compared to a loan given by the government that got the client much more money,

the amount of fees paid in those monthly installments were much higher. Another key difference

in those loans is the time in which the money would be available to the costumer. In the one that

comes from the government it can take up to a week for the funds to be available, it needs to be

approved by the institution. Now, the private one was immediate, as soon as you digitally signed

the money would be directly deposited into the client account. So if a client needed money fast,

he had no choice but to go through the private one and pay the much higher amount of fees.

A lot of different conflicts arise in that department, but one of the most common ones

was from people who were very used to using the government line of credit, so much so that they

ran out of that option. When given the choice of using the private line of credit they would not be

happy with the difference in price. On this particular bank we didn’t have the option of lowering

the interest rate, or increase the line of credit. All we could do was sell what was already set by

the bank or government and give our customers the best option for what they needed at the

[Link] that same context I have reacted in different ways depending on the person situation
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and amount of money they needed. Usually I would give them other options to decrease the

amount paid in interest rate, such as doing it in the least amount of monthly installments.

One day a man comes to my desk and ask for another loan, he needs R$2.000,00 to fix

his car, and he hopes he can get he government loan again so he can pay monthly installments

that he can barely feel he is paying for a long amount of time. I look at his options and see that

he has made a lot of loans before and ran out of that line of credit. He does have a limit of up to

R$5.000,00 in the private option. I am not surprised at his negative reaction but with a smile I

talk about the positive aspects of it. He will have his money to get his car fixed right now and not

possibly wait one week without it. Further more I took a look at his previous loans and noticed

that in most of them he still had more 5 or 7 years to pay, if we went through he wouldn’t be

paying for so long, in just 5 months he could be free from the debt. He took a breather and signed

the loan, thanking me for fixing his problem. A lot of what I did was on my attitude, shifting the

way he saw the same situation.

The conflict described in the scenario can be categorized as a pseudo-conflict. The client

initially believes his only viable option is the government line of credit, which he prefers due to

its lower interest rate and longer repayment period. When informed that he no longer qualifies

for that option and must consider the higher-interest private line of credit, he perceives this as a

conflict because it goes against his expectations and financial preferences. The conflict is

resolved not by addressing a genuine clash of interests but by providing additional information

and reframing the situation. I explained the advantages of the private line of credit: immediate

availability of funds and a shorter repayment period compared to previous loans. This shifts the

client’s perspective and helps him see the potential benefits of the higher-interest loan despite

his initial reluctance. That management style can be identified as Collaboration to problem
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solving. Engaging with the client to understand his needs and concerns regarding the loan,

instead of imposing a solution or dismissing the client’s preferences outright, I worked

collaboratively to explore different options and find a mutually acceptable solution.

Another management style that could have been used is the avoiding tactic.

Acknowledging the client’s preference for the government line of credit but explaining calmly

and respectfully that the client no longer qualifies for it due to previous loans. Firmly expressing

my regret that the desired option isn’t available and reassuring to the client that I understands his

frustration. The focus would be on maintaining a positive relationship despite the unfortunate

circumstances. I would inform the client of the private line of credit as the only current option

available, without pushing for its acceptance or emphasizing its benefits. Making the client come

to the conclusion by himself.